Correlation Between Ashmore Emerging and Nationwide
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging and Nationwide at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ashmore Emerging and Nationwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashmore Emerging Markets and Nationwide E Plus, you can compare the effects of market volatilities on Ashmore Emerging and Nationwide and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ashmore Emerging with a short position of Nationwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and Nationwide.
Diversification Opportunities for Ashmore Emerging and Nationwide
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ashmore and Nationwide is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets and Nationwide E Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide E Plus and Ashmore Emerging is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ashmore Emerging Markets are associated (or correlated) with Nationwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide E Plus has no effect on the direction of Ashmore Emerging i.e., Ashmore Emerging and Nationwide go up and down completely randomly.
Pair Corralation between Ashmore Emerging and Nationwide
Assuming the 90 days horizon Ashmore Emerging Markets is expected to generate 0.65 times more return on investment than Nationwide. However, Ashmore Emerging Markets is 1.54 times less risky than Nationwide. It trades about 0.1 of its potential returns per unit of risk. Nationwide E Plus is currently generating about 0.04 per unit of risk. If you would invest 509.00 in Ashmore Emerging Markets on September 3, 2024 and sell it today you would earn a total of 68.00 from holding Ashmore Emerging Markets or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. Nationwide E Plus
Performance |
| Timeline |
| Ashmore Emerging Markets |
| Nationwide E Plus |
Ashmore Emerging and Nationwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and Nationwide
The main advantage of trading using opposite Ashmore Emerging and Nationwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging position performs unexpectedly, Nationwide can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nationwide will offset losses from the drop in Nationwide's long position.| Ashmore Emerging vs. Goldman Sachs Growth | Ashmore Emerging vs. Nationwide Growth Fund | Ashmore Emerging vs. Franklin Growth Opportunities | Ashmore Emerging vs. Smallcap Growth Fund |
| Nationwide vs. Volumetric Fund Volumetric | Nationwide vs. Fabxx | Nationwide vs. T Rowe Price | Nationwide vs. Aam Select Income |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets |